How to avoid penalties on your corporation tax
Scope of Corporation Tax
- Corporation tax is levied on profits earned by limited companies that includes trading profits, Disposal or sale of assets, and investments.Non Resident companies or Branches of Foreign companies operating in Ireland are also subject to Corporation tax.
Corporation Tax Rates
- Currently, Ireland corporation tax rate is 12.5% per cent on trading income and 25% on Passive income with return. Companies are required to submit Corporation tax return and Make payment of Tax with nine months after the year end of its Accounting Period.
Consequences of Late Filings of Corporation Tax in Ireland.
As a limited company, there are important legal obligations that are required to be observed: failure to do so could lead to penalties being imposed on your business by Revenue.
Late Filing will attract an interest of at a daily rate of 0.0219% on late payments or payments that are not made in full.
Additionally company will incur a surcharge of 5% – if return is filed within two months after the missed deadline or 10% – if return was filed after 2 months of deadline.
Essential steps to manage your corporation tax affairs
To avoid paying penalties for late filing and payments, companies must adhere to the deadlines and submit and pay on time.
Ensuring you meet all relevant deadlines is critical to avoid incurring a penalty that will affect your company’s financial standing and reputation.
Providing false information
If the Corporate tax return is judged to be inaccurate, Revenue may instigate a tax enquiry (tax audit) that could result in a fine. Getting your tax calculations wrong is clearly a serious matter. It, therefore, makes sense to entrust an experienced accountant with your company’s tax affairs, minimising the chance of careless mistakes that could cost your business severely.
Contact us for expert corporation tax advice
With decades of experience managing companies’ corporation tax, TAS is the first choice for businesses seeking a reliable and efficient way to manage their tax compliance affairs. To find out more, please call us on +353 1 442 8230 or send us a message and one of our knowledgeable team will be in touch.
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